Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 ESG Investing
    • 2023 Private Markets
Breadcrumb
  1. Home
  2. ESG
October 16, 2017 01:00 AM

Managers hard at work on sustainable development

Sophie Baker
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Jamie Jenkins said his organization felt compelled to show how its investments align with SDGs.

    As a number of pension funds around the world come to grips with implementing the United Nations' 17 sustainable development goals into their portfolios, money managers have also been working away in the background.

    Despite the work by some high-profile institutional investors, some managers said they are not yet getting questions from their clients.

    "Clients are not bringing it up with us directly yet, but companies are," said Will Oulton, global head, responsible investment at First State Investments in London. "We have seen companies quite proactive in saying, 'We're going to report on how contributing to the SDGs is most relevant to our sector,' " he said.

    First State itself has been working on the goals and how to align them with portfolios. Executives work with the University of Cambridge's Investment Leaders Group to develop appropriate metrics that can translate to portfolios.

    "With the (Investment Leaders Group) we have an aspiration to be able to report on a number of dimensions, one being the real economy impact of our investment portfolios," added Mr. Oulton.

    He said one positive aspect of the goals is that they have created a language and lexicon around the topic. "I think the SDGs can build that bridge between companies and investors. It will take time, but companies understand what it means to their business, and in time investors" may choose to use the goals to measure outcomes.

    This idea of creating a framework was highlighted by PGGM, which runs the assets of the €188.5 billion ($222.7 billion) Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, among others. "If you want to be impact investors, I think we have simply got to adopt the menu of impact themes that the community as a whole has embraced," said Piet Klop, senior adviser responsible investment at PGGM. "So the SDGs we think are almost the shared language that people are learning to speak when talking about impact. Impact is mostly defined along those SDGs, (and) that's how we should organize ourselves. You can't talk about impact without mentioning the SDGs now."

    Robert de Guigne, Geneva-based head of ESG solutions at Lombard Odier Investment Managers, said demand is picking up and that executives at the firm "believe that SDGs have the power to establish a strong new investment framework.

    "We have been working on responsible investment solutions for over two decades and this looks like a first unifying approach to report everyone's effort to contribute in finding solutions to world issues," he said. While the goals are "relatively easily applied to individual countries, it is a much more difficult task to see how corporates might contribute to this agenda," he said.

    Other managers are also focusing on the issue.

    BMO Global Asset Management assesses and reports on how investments in its responsible global equity strategy are aligned with the goals. Jamie Jenkins, director and head of responsible global equities in London, said while executives had not built the portfolio specifically to address the goals, "we hoped, when we did a mapping exercise, that our portfolio did have a pretty reasonable alignment with the 17 SDGs because of what we're trying to do — (place) sustainability at the heart."

    Detailed analysis to understand how the strategy's companies and engagement actions address the goals showed strong connectivity, and executives will work to advance this connection even further going forward. The work was all the more important given interest from larger institutional clients in continental Europe on the topic, as well as increasing interest in the U.K., added Mr. Jenkins.

    "Because of that rising interest we felt we needed to step up to the mark and demonstrate how the companies we hold are (aligned to) the SDGs," said Mr. Jenkins. One team member was tasked with the "deep and rigorous process to try and track which companies genuinely have a link to the SDGs," while trying to "avoid any SDG greenwashing. I was very much determined that what we put together will stand up to close scrutiny with a very rigorous methodology about how we track these SDGs," he added.

    A lot of work has been done in the Netherlands.

    Money manager Robeco and 17 other Dutch financial institutions, representing or managing €2.8 trillion ($3.3 trillion) in assets, have signed the sustainable development goals investing agenda and have invited the Dutch government and central bank "to join them in continuing to make a concerted effort to support the" goals, said Masja Zandbergen, head of ESG integration, and Carola van Lamoen, head of active ownership at Robeco in Rotterdam, in an emailed comment. "We also see that some large pension funds in the Netherlands have actually already set specific targets for SDG investments amounting to a substantial part of their portfolio."

    Robeco and its sustainability focused affiliate RobecoSAM have "combined forces to contribute to the 17 goals. Both in equities and credits (we) are working on developing SDG solutions."

    Some managers are seeing interest in specific sustainable development goals.

    "The research shaping our strategy shows that the largest appetite for SDG-aligned investment is in health and well-being, affordable and clean energy, and climate change," said Douglas Hansen-Luke, executive chairman at ethical venture capital firm Future Planet Capital in London. "By focusing on these issues, with the broader aim of addressing SDG 17, (to strengthen the means of implementation and revitalize the global partnership for sustainable development), we have secured commitments of over $300 million in funding for sustainable innovation."

    But the importance of delivering returns to clients is not lost on Future Capital Planet executives.

    "While impact is important to us, it does not come second to securing returns. We think investment shouldn't be a compromise between doing good and doing well. Our model offers a way to maximize returns while achieving the goals set out by the UN. By focusing on education, climate change, sustainable growth, health and security, we give our clients unrivaled access to innovation addressing 11 of the 17 goals," added Mr. Hansen-Luke.

    Related Articles
    Pension fund execs call for investors to use UN's sustainable development goals
    GPIF, World Bank to study extending ESG approach to bond investments
    Asset owners push to satisfy U.N. goals
    U.K. impact investing board outlines steps for investors to align with sustaina…
    Asset owners push to satisfy U.N. goals
    ESG analysis grows in all regions for CFA Institute members; EMEA takes biggest…
    Commentary: What's behind asset owners' slow adoption of responsible investment
    Commentary: Investment management industry must be a force for societal change
    Commentary: Finance and society – forging a new pact
    Recommended for You
    wind_power_green_economy_1550-main_i.jpg
    IIGCC launches corporate climate engagement drive
    Indiana-flag-main_i.jpg
    Indiana Public Retirement System awards no-bid consulting contract to anti-ESG firm
    HSBC_Sign_i.jpg
    Texas places HSBC on state blacklist over ESG stance
    The Plan Sponsor's Guide to Pension Risk Transfer
    Sponsored Content: The Plan Sponsor's Guide to Pension Risk Transfer

    Reader Poll

    March 22, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    The Need for Speed in Trend-Following Strategies
    Global Fixed Income: Volatility and Uncertainty Here to Stay
    Morningstar Indexes' Annual ESG Risk/Return Analysis
    2023 Outlook: The Top Five Trends to Monitor in the Year Ahead
    Show Me the Income: Discovering plan sponsor and participant preferences for cr…
    The Future of Infrastructure: Building a Better Tomorrow
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 ESG Investing
      • 2023 Private Markets